Branding and Scarce Commodities

In today's world, time and money are often the scarcest commodities. People try to save time or money or both. Many people do not have enough of either. Others earn and have a lot of money but find time to be what they most lack in their lives. While others may have all of the time in the world but little money. How does this relate to brands and marketing? One must realize that people behave differently depending on what commodity is scarce in their lives.

I have written before about the four generic customer segments - convenience-driven consumers, price-driven consumers, brand loyal consumers and category enthusiasts. Often people are loyal to brands because they know their quality level and can count on them. Always choosing the same brand saves lots of time and effort. So, in a way, this is an approach that values time. Convenience-driven consumers shop for items that they need wherever they can find them regardless of price. While price-driven consumers will typically hunt for the lowest prices and will go out of their way to pay less. Category enthusiasts are less sensitive to time or money because they highly value the category itself and enjoy the time they devote to shopping for new products and brands in the category. However, depending on what is scarce in their lives, category enthusiasts can display some of the behaviors of convenience-driven, and especially price-driven consumers too. 

When you create your brand and establish its pricing and distribution strategies, you should be cognizant of what is scarce in its customer's lives.

Brands and Customer Segmentation

Marketers segment their markets so that they can better target the customer groups that offer the greatest sales potential. This also helps them refine brand messages for each group. Markets can be segmented on product usage, purchase behavior, benefits, price, life stage, cohort group, psychographics, geographics or geodemographics. In many product categories, there are price sensitive, convenience driven, brand loyal and category enthusiast groups. 

One way to segment markets is based on specific attitudes, values, beliefs, lifestyles and self-perceptions. The market researcher uses qualitative research to uncover hypothesized attitudes, values, beliefs, lifestyles and self-perceptions associated with heavy or loyal brand or product usage. These attitudes, values, beliefs, lifestyles and self-perceptions are translated into statements that can be tested against product/brand usage in a quantitative brand segmentation study. Once these statements are validated, they can be used in all subsequent research.

We have worked with many clients to help them determine their most lucrative segments based on attitude, value, belief, lifestyle or self-perception statements. Here are some of the statements that we have found identify different customer segments:

• I am a fun mom
• A good education is critical to my child's success
• One person can make a difference in the world
• I love to entertain in my outdoor space
• The world is changing so fast that it is hard to keep up
• Our country needs a strong leader who can take control of things
• Climate change is one of the world's most pressing problems
• I don't worry too much about anything
• I am always one of the most stylish people in the room
• Ending the cycle of poverty starts with children
• A good Christian always seeks to help those who are less fortunate
• It's ok to indulge once in awhile
• I love to drive
• I love to shop

I wish you great success in finding and appealing to your most promising customers. 

For more information on market segmentation, refer to the "Understanding the Consumer" chapter in Brand Aid, second edition.

Customer Need States

Sometimes we think of consumers too simplistically or monolithically. Even if we are very thorough in defining our target customers, we may miss all of the different needs states a given person may have in our product categories. For instance, consider dining out. You might understand me very well demographically and psychographically. However, have you considered all of my different need states when it comes to dining out? Each one of these implies a different approach to location, menu items, type of service, ambiance and a variety of other factors. Here are some possible different need states:

• My wife is out of town and I am dining alone. I brought a book to read and have the rest of the evening for a leisurely meal. I am feeling financially flush and I typically enjoy a glass of wine before dinner. Did I mention that I like fine wine, not the typical selection on a restaurant's menu?
• I am in a rush to get to a client meeting. I have ten minutes to eat (or should I say inhale) my meal. I don't like most fast food restaurants and I don't eat much meat at all. While I could eat in my car, I am in a suit and do not want to spill food on the suit so I would stay away from anything that has a sauce or dressing or might otherwise drip and stain.
• I am entertaining clients from out of town and want a quiet corner of the restaurant where we can talk without being overheard by others. While I don't eat much meat, the people I am entertaining have been talking about going to a steak place all day.
• We are throwing a birthday party for our nine year old daughter so we want to go to a restaurant that the children will like. I would be best if it included fun activities. I hope there is also food palatable to all of the parents.
• It is a Saturday and I am running errands. I need to stop some time for lunch. There is a new Thai restaurant in the neighborhood. I have not tried it yet. I love Thai food.
• My doctor just told me I need to stick to a strict low carb (or glycemic or salt, etc.) diet. I am going out with friends to a restaurant we jointly decided upon. 
• I am on my way to a very popular and crowded restaurant whose reservation I booked months ago. While I don't want to miss the chance of eating there, one of my best friends just died of cancer this morning and I am not feeling very hungry or happy. 
• I decide to go to a restaurant I haven't been to since I was a child. I don't think the restaurant has changed much over the years. I am going there mostly out of nostalgia. 
• I am going to a restaurant with a friend because it has live jazz and a good wine list. I have no idea what their food is like. I hope there is something on the menu that I will like.
• I am in Maine so I have to go to an ocean front lobster pound. While I really like lobster, I hate the thought of killing one to eat.

While this may sound schizophrenic, it is not that different from when anyone might say. The point I am trying to make is that people are complex and have a mix of needs at any point in time. Often that mix of needs varies quite a bit from one time to another. When considering how to configure your product features, service elements and total brand experience, you must realize that you will mostly appeal to one or perhaps two or three need states, not all of them. Some require frequent and attentive service. Others require unobtrusive service that encourages lingering. While some might not require much service at all. 

I hope this has helped you think about different needs states that your customers might have and what that means for your brand and the experience that it delivers.